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If you need cash while waiting for your income tax refund, some tax preparation services — like Jackson Hewitt, H&R Block and TurboTax — offer tax refund loans.
Tax refund loans, also called "refund advances," let you access your refund early. The tax preparation company lends you money that is repaid with your tax return. Some loans are zero interest, while others include interest if you want the funds before 2024.
Tax preparers typically require borrowers to file their taxes with them, which can come with a fee. In paying a tax preparer just to get the advance, you’re basically paying to access your own money.
» MORE: Tax calculator: Estimate your refund
What are tax refund advance loans?
Tax refund advance loans are short-term loans that are repaid through your upcoming IRS tax refund. Loans are usually offered from December through February, and amounts can range from $100 to $6,500. In most cases, the loan amount is deducted from the tax refund once it’s issued.
Some loans can be dispersed within 24 hours on a prepaid card or within a few days as a direct deposit to a bank account.
To be eligible for most tax refund loans, you must have your taxes prepared by the company offering the loan, and that might mean you’ll pay a tax preparation fee. Tax preparers may have a minimum refund amount requirement to qualify, and you may get only a portion of your expected refund in advance.
🤓Nerdy Tip
A tax refund loan is an option if you need money quickly, but you can save on fees if you're willing to wait. The IRS partners with tax preparers to offer a free filing option for those who meet the income requirement. It can take three to eight weeks to receive your tax refund, depending on how you file.
» MORE: Where’s my refund? Refund status tracker guide
Where to get tax refund loans
Jackson Hewitt
Jackson Hewitt offers two refund advances. The Early Refund Advance loan, which has a 35.53% annual percentage rate, is available starting in December 2023, while the No Fee Refund Advance loan, with a 0% APR, is available in January 2024. Republic Bank & Trust Company issues both.
Minimum federal tax refund amount | For Early Refund Advance Loans of $1,000, the minimum refund is $2,600. Jackson Hewitt did not specify minimums for other loan amounts. |
Loan amounts | Early Refund Advance: $100, $300, $500 or $1,000. No Fee Refund Advance: $250, $500, $750, $1,000, $1,500, $2,500, $3,500, $4,500 or $6,500. |
APR | Early Refund Advance: 35.53%. No Fee Refund Advance: 0%. |
Time to funding | Within 24 hours if you have the money loaded onto a prepaid card. Funding can take one to five business days if you want the loan deposited into a bank account. |
Requirements | You must have your taxes prepared by appointment at a Jackson Hewitt location. The Early Refund Advance requires a recent pay stub, government-issued ID and Social Security card. The No Fee Refund Advance requires a W-2 and other tax documents. |
Tax preparation fee | Varies and determined during your tax filing appointment. |
Deadline | The Early Refund Advance is available from Dec. 11, 2023, through Jan. 14, 2024. The No Fee Refund Advance is available from Jan. 2, 2024, through Feb. 11, 2024, at most Jackson Hewitt locations. |
» MORE: Compare best tax software
H&R Block
H&R Block also offers two advances. The Emerald Advance loan is available through December 2023. Unlike zero-interest tax refund loans, the Emerald Advance operates like a traditional loan with an APR of 35.9%. You can use your tax refund to repay the loan or repay by debit card, bank account transfer or check. The loan must be repaid by March 31, 2024.
H&R Block's Refund Advance loan is available starting in January 2024. The Refund Advance has no interest or fees, but it requires filing your taxes with H&R Block. Pathward, N.A., issues the Refund Advance loan.
Minimum federal tax refund amount | H&R Block did not specify a minimum refund amount. |
Loan amounts | Emerald Advance: $350 to $1,300.Refund Advance: $250, $500, $750, $1,250 or $3,500. |
APR | Emerald Advance: 35.9%.Refund Advance: 0%. |
Time to funding | Same-day funding is available. The loan will be available through an H&R Block prepaid card or spending account that you receive during your appointment. |
Requirements | Emerald Advance: You must provide proof of identification and income. Having a tax refund is not required for this loan, but it can be used for repayment. Refund Advance: You must have your taxes prepared at a participating H&R Block office, receive a sufficient refund amount and provide proof of identification. You must also meet certain credit and other underwriting requirements. |
Tax preparation fee | Fees start at $89, and there may be an additional state filing fee. |
Deadline | The Emerald Advance loan is available at participating locations from Nov. 1, 2023, to Dec. 31, 2023. The Refund Advance loan is available from Jan. 2, 2024, to Feb. 29, 2024. |
» MORE:
Intuit TurboTax
Intuit TurboTax’s zero-interest Refund Advance loan is funded by First Century Bank.Unlike other tax preparers, TurboTax allows customers to apply online. If approved, borrowers must open a Credit Karma Money checking account to access the loan.
Minimum federal tax refund amount | $500. |
Loan amounts | $250, $500, $750, $1,000, $1,500, $2,000, $2,500, $3,000, $3,500 or $4,000. |
APR | 0%. |
Time to funding | Funds are deposited into a Credit Karma Money Spend checking account within minutes after your return is accepted. A debit card can take one to two weeks to arrive. |
Requirements | There are several eligibility requirements for the TurboTax refund advance. Here are some of them:
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Tax preparation fee | TurboTax online products vary from free to $359. |
Deadline | The refund advance loan is available until Feb. 15, 2024. |
» MORE: NerdWallet’s review of TurboTax
How do tax refund loans work?
You submit an application for the refund loan when you file your return with a tax preparer.
Most tax preparers partner with a bank that lends the funds. For example, Republic Bank & Trust Company issues tax refund loans for Jackson Hewitt.
Tax refund loans don’t usually have the same credit score requirements as unsecured loans, but the bank may review an applicant’s credit profile without affecting their credit score.
Qualification can depend on the amount of your expected refund. Tax refund advance loans require identity verification, a review of your tax return inputs and history.
Once approved, you can typically access the loan amount quickly in a checking account provided with the tax preparer, on a prepaid card, which could come with restrictions and fees of its own, or the funds will be deposited into your bank account.
The tax preparer will automatically deduct the loan amount, plus any interest, from your refund when the IRS releases it.
» MORE: Explore alternatives to payday loans
How much does a tax refund loan cost?
While a tax refund loan may have zero-interest, tax preparation fees can vary depending on the complexity of the return.
Let’s say you get a $500 tax refund loan against your refund that arrives a month later. If you pay an $89 tax prep fee to file your taxes, the fee is equivalent to an annual percentage rate of 217%. Although, if you were going to pay for tax prep anyway, you might value the loan differently.
Some tax refund loans may have interest charges which can make a small loan feel expensive. A $100 tax refund loan with Jackson Hewitt’s Early Refund Advance has an APR of 35.53%, according to the company’s website. That’s not including tax preparation and prepaid card fees, which can add up on a small loan.
While an advance can be a way to get cash quickly, it may be cheaper to wait for the IRS to send your refund directly to you.
Pros and cons of tax refund loans
Pros
There’s often no hard credit pull.
Most loans are interest-free.
Funding is fast.
Cons
You will likely have to pay a tax filing fee.
You may be required to open an account or debit card of the tax preparer’s choosing.
See AlsoCBA - RAL ConsumersThe loan is subtracted from your IRS tax refund.
Tax refund loan alternatives
You could get a lower rate on the same size loan elsewhere and then use your refund to pay it off.
Loan apps provide a low- or no-fee advance on your paycheck. You can typically borrow up to a few hundred dollars, and the app will withdraw the advance amount from your bank account on your next payday. However, loan apps may charge a subscription fee, a fee to get funds faster or ask for an optional tip. These apps can be helpful if you need funds quickly, but they aren’t a long-term solution.
Payday alternative loans, offered by some credit unions, allow their members to get payday alternative loans from $200 to $2,000, depending on the type of loan. These loans have a maximum APR of 28%, with application fees capped at $20.
Small personal loans offered by some online lenders start at $1,000 with next-day funding after approval. Rates range from 6% to 36%, and qualifications vary by lender. Good- or excellent-credit borrowers (those with a 690 score or higher) with high incomes and little existing debt qualify for the lowest rates.
» MORE: What is a holiday loan?
Lenders that offer small loans and fast funding
If you don’t expect to get a refund that covers your needs, or you want more time to repay the funds, consider getting a loan with an online lender that offers fast funding.
These lenders can fund a loan within a few business days and have minimum loan amounts starting at $1,000. Repaying a personal loan on time can help you build credit, but understand the risks before borrowing.
» MORE: Best emergency loans
Lender | Minimum loan amount | Time to fund |
Upgrade 5.0 NerdWallet rating | $1,000. | Same or next business day. |
Upstart 4.5 NerdWallet rating | $1,000. | Same or next business day. |
LendingClub 4.5 NerdWallet rating | $1,500. | One to three days. |
Best Egg 4.5 NerdWallet rating | $2,000. | Same or next business day. |
Universal Credit 4.0 NerdWallet rating | $1,000. | Same or next business day. |
Prosper 4.5 NerdWallet rating | $2,000. | One to three days. |
Frequently asked questions
What is a tax refund loan?
A tax refund loan is a short-term loan you can take out through a tax preparer when you’re anticipating a refund. It allows you to access your refund early, and the loan is deducted from your refund once it’s issued.
Can I get a loan based on my tax refund?
Yes, tax preparers like H&R Block, Jackson Hewitt and TurboTax allow you to access your refund early by partnering with banks to issue a tax refund loan.
When are tax refund loans available?
Tax preparers typically provide tax refund loans from December through February. However, exact times can vary depending on the tax preparation company.
How fast can I get a tax refund loan?
Some tax preparers can fund a tax refund loan within an hour after the IRS accepts your tax return. For others, it can take a day or two.
Can I get a loan on my tax refund if I already filed?
Typically, you apply for a tax refund loan when you file your taxes at a tax preparer. H&R Block and Jackson Hewitt require you to visit a participating office location, while Turbo Tax lets you apply online for a tax refund loan when filing your taxes.
